SME Consultant StudySME Consultant: Seven subjects and case workshops

Learning goals

• Distinguish definitions and assumptions, solve worked exercises and explain the reasoning behind each decision.

Key points

• A demand curve holds nonprice determinants constant. Income or preferences can shift it; a change in the good’s own price moves along it. Solve demand and supply together for equilibrium. A price ceiling creates a shortage when it binds below equilibrium.
• Absolute price elasticity divides the percentage quantity change by the percentage price change. Above one, a small price increase normally lowers revenue. Cross elasticity is positive for substitutes and negative for complements; negative income elasticity identifies an inferior good.
• The budget line PxX+PyY=I describes affordable bundles; an indifference curve connects bundles of equal utility. At a regular interior optimum, the marginal rate of substitution equals the price ratio. Separate substitution and income effects when analyzing a price change.
• In the short run, distinguish fixed and variable costs. Marginal cost is the extra cost of one more unit. A competitive firm compares price with marginal cost when producing; shutdown depends on average variable cost, while long-run exit requires consideration of total cost recovery.
• A competitive firm takes price as given. A monopolist chooses output where MR=MC and then reads price from demand. Oligopoly requires strategic interdependence. A Nash equilibrium is a strategy profile in which no player gains by changing its own strategy alone.
• Consumer surplus is willingness to pay less price; producer surplus is price less supply cost. A tax creates a wedge between buyer and seller prices and can cause deadweight loss from forgone trades. Externalities and public goods can separate private incentives from social welfare.
• GDP measures value added produced domestically during a period, excluding double counting of intermediate inputs. Nominal GDP uses current prices; real GDP removes price effects. The unemployment rate uses the labor force, rather than the entire population, as its denominator.
• In a simple closed economy without taxes, Y=C0+cY+I+G and the spending multiplier is 1/(1−c). Taxes, imports and interest-rate responses change the result. IS represents goods-market equilibrium and LM money-market equilibrium; fiscal expansion can crowd out private investment through interest rates.
• Money demand reflects transactions and portfolio choices; interest is an opportunity cost of holding cash. The simple reserve-ratio multiplier 1/r ignores cash leakage and other constraints. The real interest rate is approximately the nominal rate minus expected inflation.
• Comparative advantage depends on opportunity cost, not absolute productivity. Check the quotation direction before interpreting exchange rates. Separate current transactions in goods, services and income from financial transactions; a trade balance alone does not determine the current account.

Workplace uses

• Workplace applicationWhen considering a price increase, estimate quantity response and compare revenue and profit. Demand expectations alone do not justify an investment.

Major topics (site curriculum)

• Demand, supply and equilibrium
• Elasticity and revenue
• Consumer choice and budget constraints
• Production costs and profit maximization
• Market structure and game theory
• Surplus, taxation and market failure
• GDP, prices and unemployment
• Goods market, multipliers and IS–LM
• Money, monetary policy and inflation
• Comparative advantage, exchange rates and external accounts

Learning resources

• Examination scope reference ↗
• SME Consultant exam guide / study guide ↗

Learning goals

• Distinguish definitions and assumptions, solve worked exercises and explain the reasoning behind each decision.

Key points

• Transactions preserve assets=liabilities+equity through debit and credit entries. Under accrual accounting, revenue and expense recognition can differ from cash settlement. Collecting a receivable is not new revenue, and current depreciation is not a current cash payment.
• ROE divides net income by equity; ROA requires an explicit earnings definition. DuPont decomposes ROE into net margin, asset turnover and financial leverage. The current ratio indicates short-term coverage, but receivable collectibility and inventory quality also matter.
• Contribution is revenue less variable cost. Break-even sales equal fixed costs divided by the contribution margin ratio; add target profit to fixed costs for target sales. CVP assumes stable prices, unit variable costs and fixed costs within a relevant range, including a stable product mix.
• Job costing accumulates costs by order; process costing by period and process for continuous production. Overhead drivers should reflect resource consumption. Standard variances separate price from usage, but a variance alone does not establish departmental responsibility.
• Indirect operating cash flow adjusts profit for noncash items and working capital. Increasing receivables or inventory usually absorbs cash; increasing payables defers payments. The cash conversion cycle equals inventory days plus receivable days minus payable days.
• NPV discounts incremental future cash flows at the capital cost and subtracts initial investment. IRR makes NPV zero. For mutually exclusive projects with different scales or timing, prioritize value added through NPV. Simple payback omits discounting and post-payback cash flows.
• WACC weights equity cost and after-tax debt cost using market-value capital weights. CAPM is the risk-free rate plus beta times the market risk premium. Beta captures exposure to market movements, not every firm-specific risk.
• A bond is valued by discounting coupons and redemption value. Rising market yields usually lower fixed-rate bond prices. The constant-growth dividend model is P=D1/(r−g), requiring r>g. Distinguish next-period from current dividends and market yield from coupon rate.
• Compare future revenues and costs that differ between alternatives. Exclude sunk costs; include avoidable and opportunity costs. When a resource is constrained, rank products by contribution per unit of that resource rather than contribution per finished unit.
• Expected portfolio return is a weighted average; portfolio risk also depends on correlation. Hedging offsets an existing exposure. A forward exchange contract can stabilize the home-currency value of a transaction but can also surrender gains from favorable exchange-rate movements.

Workplace uses

• Workplace applicationFor an investment of 100 and net cash inflow of 110 after a year at 10%, NPV is zero. Do not assume that every hour saved becomes a cash saving.

Major topics (site curriculum)

• Bookkeeping and financial statements
• Profitability, liquidity and efficiency
• CVP, break-even and margin of safety
• Costing, allocation and standard variances
• Cash flow and working capital
• NPV, IRR and payback
• Cost of capital, WACC and CAPM
• Bond and equity valuation
• Relevant costs and constrained decisions
• Portfolios and financial risk management

Learning resources

• Examination scope reference ↗
• SME Consultant exam guide / study guide ↗

Learning goals

• Distinguish definitions and assumptions, solve worked exercises and explain the reasoning behind each decision.

Key points

• Five forces examines rivalry, entry, substitutes and buyer/supplier bargaining power. Cost leadership requires a lower cost structure, rather than merely lower prices. Differentiation requires differences customers value; focus limits the competitive scope to a chosen segment.
• VRIO checks value, rarity, difficulty of imitation and organizational support. Ansoff classifies growth by existing/new products and markets. Alliances can complement resources but require assessment of dependency, knowledge leakage and conflicting objectives.
• The growth-share matrix classifies businesses by market growth and relative share. Stars have high growth and high share; cash cows low growth and high share. It is a cash-generation hypothesis, not an automatic divestment rule. Product life-cycle paths differ across markets.
• Functional structures emphasize specialization; divisions clarify product or market responsibility. Matrix structures introduce dual authority and coordination demands. Contingency theory selects structure to fit strategy, environment and technology rather than assuming one universally best design.
• Herzberg distinguishes hygiene factors from motivators such as achievement and recognition. Expectancy theory examines effort–performance expectancy, performance–reward instrumentality and reward valence. Leadership should account for both task and relationship needs in context.
• OJT develops skills through work; off-JT separates training from regular duties. Appraisals require comparable goals, evidence and checks for rater bias. Align development, placement and rewards. Employment-law questions require checking current rules and their applicability.
• Segmentation groups customers with meaningful similarities; targeting selects groups; positioning defines the intended place in customers’ minds. Evaluate accessibility, differential response and capability as well as market size. Brands accumulate identification, associations and trust.
• The four Ps coordinate product, price, place and promotion. Pricing considers demand value and competition as well as cost. Skimming targets early high willingness to pay; penetration emphasizes adoption. Product-line extensions require checks for cannibalization and brand fit.
• Intermediaries reduce transaction complexity, create assortments and perform logistics. Push targets channel members; pull stimulates end-customer demand. CRM connects acquisition, retention and development using retention and contribution value, rather than sales alone.
• Research requires clear populations, sampling and unbiased questions. Correlation is not causation. Service characteristics include intangibility, simultaneity, variability and perishability, making process design important. Digital metrics require consistent denominators and reporting periods.

Workplace uses

• Workplace applicationBefore deploying support AI to every customer, identify the segment and problem it serves and check that staff incentives support the change.

Major topics (site curriculum)

• Competitive strategy and five forces
• VRIO, growth strategy and alliances
• Portfolio analysis and product life cycles
• Structure, authority and contingency
• Motivation and leadership
• Development, appraisal and employment basics
• STP, buying behavior and brands
• Product policy and pricing
• Channels, promotion and relationships
• Research, service quality and digital metrics

Learning resources

• Examination scope reference ↗
• SME Consultant exam guide / study guide ↗

Learning goals

• Distinguish definitions and assumptions, solve worked exercises and explain the reasoning behind each decision.

Key points

• Make-to-order and make-to-stock differ in the timing of orders and production. Job, batch and continuous production reflect variety and volume. Functional layouts support variety but can complicate movement and WIP; product layouts simplify flow but need flexibility checks.
• Align aggregate plans, master schedules and material requirements. MRP explodes dependent demand using bills of material, inventory and lead times. In PERT, the longest-duration path is critical; accelerating a noncritical task may not shorten the project.
• IE studies processes, motions and time to improve methods and standards. ECRS considers elimination, combination, rearrangement and simplification. Standard time includes allowances, whose denominator must be stated because normal-time and standard-time conventions produce different formulas.
• Pareto charts rank categories and cumulative share; fishbone diagrams organize causal hypotheses; control charts assess process stability over time. Specification limits express requirements, while control limits reflect process variation. A stable process can still fail specifications.
• EOQ minimizes ordering plus holding cost using √(2DS/H), under assumptions such as steady demand and no stockouts. Fixed-quantity systems order at a reorder point; periodic systems calculate quantities at review dates. Safety stock addresses uncertainty.
• JIT improves flow by supplying what is needed when needed, often through downstream pull. Kanban transmits replenishment signals. TOC focuses on the system constraint. Line efficiency is total task time divided by stations times cycle time, subject to precedence constraints.
• Trade areas depend on transport, competitors, attractiveness and shopping missions, not distance alone. Layout coordinates circulation, sightlines and cross-shopping. Expansion should consider sales per area, staffing, rent and inventory rather than sales alone.
• Merchandising aligns assortment, quantity, price and timing. Sales equal customers times basket value; basket value can split into items and average price. Combine turnover with gross margin to assess inventory investment. GMROI divides gross profit by average inventory at cost.
• Logistics links transport, storage, handling, packaging, processing and information. SCM coordinates demand, supply and inventory across firms. The bullwhip effect amplifies downstream demand variation upstream; information sharing, smoother ordering and shorter lead times can help.
• POS captures item, quantity and amount at sale, but does not directly explain missing sales. Forecasting separates seasonality, promotion and stockouts. ABC analysis ranks cumulative contribution to direct tighter management toward high-contribution items.

Workplace uses

• Workplace applicationAutomating an upstream step may not increase output if downstream review remains the bottleneck. Measure WIP and review waiting time too.

Major topics (site curriculum)

• Production types and layouts
• Production planning, MRP and scheduling
• Industrial engineering and standard time
• Quality control and QC tools
• Inventory, EOQ and replenishment
• JIT, constraints and line balancing
• Retail location, trade areas and layout
• Merchandising, margins and GMROI
• Logistics, SCM and distribution
• POS, forecasting and retail information

Learning resources

• Examination scope reference ↗
• SME Consultant exam guide / study guide ↗

Learning goals

• Distinguish definitions and assumptions, solve worked exercises and explain the reasoning behind each decision.

Key points

• Shareholders of a stock company generally have liability limited to their subscribed investment; company and shareholder assets are distinct. A Japanese godo-kaisha is a membership company with limited-liability members. Compare governance, financing and transferability, not just formation costs.
• Powers of shareholders, directors, boards and auditors depend on the governance structure. Distinguish ownership from management and examine conflicts and oversight. In a board company, the board handles key management decisions, supervision and selection of representative directors.
• Shares represent equity; bonds debt, with different voting and repayment rights. New shares can dilute existing holders. A share transfer changes owners; a business transfer moves specified business assets and relationships, requiring separate checks for contracts, employment and permits.
• Contracts generally arise from matching offer and acceptance, with formal requirements for some types. Distinguish performance, damages and termination remedies for breach. Written terms also document specifications, acceptance, payment, liability and change procedures.
• Credit control connects contracts, delivery evidence, billing, collection and deadlines. Collateral relies on specified property; guarantees add another party’s liability. Limitation periods depend on claim type and starting point, so internal records alone do not determine legal effect.
• Distinguish protected subject matter, duration and registration procedures. Patents protect inventions, utility models certain device configurations, and designs appearances. Consider filing before disclosure; a Japanese right does not automatically provide worldwide protection.
• Trademarks identify the origin of goods or services. Check designated goods/services and similarity; company-name registration is not trademark registration. Japanese trademarks run ten years from registration and can be renewed. Licenses need scope, territory, term and quality-control terms.
• Copyright protects creative expression rather than abstract ideas and generally arises without registration. Trade-secret protection requires secrecy management, usefulness and nonpublic status. Data-use rights also depend on contracts and collection conditions.
• Distinguish competitor cartels from unfair use of superior bargaining position. Japan’s revised subcontracting law took effect in January 2026; check transaction, size and order-date requirements. Competition law and subcontracting law are distinct, and contractual consent does not automatically cure unlawful conduct.
• Succession separates management control, shares/assets and know-how. Coordinate inheritance rules with company voting rights. Distinguish liquidation from restructuring in insolvency; early cash planning and assessment of legal options matter when payment difficulties emerge.

Workplace uses

• Workplace applicationAn AI service agreement should address data purposes, output usage, incident handling and exit arrangements. Public availability alone is not permission to reproduce content.

Major topics (site curriculum)

• Company forms, investment and liability
• Shareholders, directors and governance
• Shares, financing and reorganization
• Contracts, breach and termination
• Receivables, collateral and guarantees
• Patents, utility models and designs
• Trademarks, brands and licensing
• Copyright, trade secrets and data
• Competition law and fair subcontracting
• Succession, inheritance and insolvency

Learning resources

• Examination scope reference ↗
• SME Consultant exam guide / study guide ↗

Learning goals

• Distinguish definitions and assumptions, solve worked exercises and explain the reasoning behind each decision.

Key points

• CPU, memory and storage serve different roles and operate at different speeds. Caches exploit locality. Availability is MTBF/(MTBF+MTTR), improved by fewer failures and faster recovery. Series/parallel reliability calculations require explicit assumptions such as independent failures.
• IP routes traffic, TCP supports ordered reliable delivery, and DNS resolves names. TLS supports confidentiality and integrity in transit, not input correctness or endpoint safety. Distinguish bits per second from bytes: eight bits make one byte.
• Primary keys identify rows and foreign keys support references. Normalization reduces redundancy and update anomalies through functional-dependency analysis. ACID covers atomicity, consistency, isolation and durability. WHERE filters rows; HAVING filters aggregated groups.
• Requirements include performance, availability, security and operations as well as functions. Choose sequential or iterative delivery according to uncertainty. Unit, integration, system and acceptance testing have different scopes and responsibilities; combine testing with reviews and static analysis.
• RFI gathers information and RFP requests proposals. Define contract responsibility, deliverables and acceptance. An SLA states agreed service levels. Incident management restores service, while problem management addresses underlying causes and recurrence.
• ERP integrates processes and data to reduce fragmented duplicate entry. BPR fundamentally redesigns work rather than merely replacing screens. Plan shared master data, ownership, exceptions, migration and adoption so that automation does not simply reproduce waste.
• IaaS provides infrastructure, PaaS an application platform, and SaaS a ready application. Responsibilities vary by service and contract. APIs need authentication, authorization, limits and compatibility management. Variable charges can grow with usage, so compare total ownership cost.
• Protect confidentiality, integrity and availability with access control, encryption, backups, monitoring and education. Symmetric and asymmetric cryptography have different key-distribution properties. Digital signatures use a private key to sign and a public key to verify; hashes are not reversible encryption.
• Means and medians differ in sensitivity to outliers. Correlation does not prove causality, and leakage inflates validation performance. For classifiers, precision=TP/(TP+FP), recall=TP/(TP+FN). Select metrics based on the costs of false alarms and missed positives.
• IT controls include approvals, separation of duties, change records and access control. Audit assesses evidence independently. BCP addresses business continuity and restoration. RTO is target restoration time; RPO defines the acceptable point of data loss.

Workplace uses

• Workplace applicationFor internal-policy RAG, constrain retrieval to the user’s permissions and test for cross-boundary document exposure.

Major topics (site curriculum)

• Computer architecture, performance and reliability
• Networks and internet protocols
• Relational databases, SQL and normalization
• Requirements, development and testing
• IT procurement, projects and service management
• ERP, process redesign and architecture
• Cloud, virtualization and APIs
• Security, cryptography and authentication
• Statistics, analytics and AI
• IT controls, audit and business continuity

Learning resources

• Examination scope reference ↗
• SME Consultant exam guide / study guide ↗

Learning goals

• Distinguish definitions and assumptions, solve worked exercises and explain the reasoning behind each decision.

Key points

• The Basic Act generally uses industry-specific capital OR employee thresholds: manufacturing up to JPY300m or 300 employees; retail up to JPY50m or 50. Small-enterprise thresholds are generally five employees for commerce/services and 20 for other industries, with scheme-specific exceptions.
• A white paper’s publication year can differ from its observation year. Check population, enterprises versus establishments, industry, size, nominal/real basis and units. Distinguish shares from growth rates and percentage changes from percentage points before comparing figures.
• Labor productivity divides value added by labor input, with a clear worker or hour basis. Revenue alone does not remove purchased inputs. The 2026 white paper discusses earning capacity, productivity and workforce utilization. Analyze pricing, customer value and process improvements separately.
• SME staffing requires retention, development, job design and wage funding as well as hiring. Entry and exit rates depend on statistical definitions and denominators. Regional analysis considers local transactions, employment, clusters and succession constraints.
• Public lending supplies funds, while credit guarantees support bank lending. A guarantee association’s payment does not simply erase the borrower’s obligation. Distinguish equipment and working-capital needs, repayment sources and collateral, and check eligibility and use-of-funds conditions.
• Check a grant’s objective, eligibility, costs, dates, award procedures and reporting. Selection, formal grant decision and payment are not necessarily simultaneous. Separate reimbursement rate, cap, taxes and excluded costs; plan the applicant’s contribution and bridge funding.
• Innovation plans emphasize new business activities; capability-improvement plans emphasize management, people and equipment. Plan approval does not automatically grant financing or tax benefits. DX support should connect business problems, process change, people and outcome measures, not just software purchases.
• Select among support centers, chambers and certified advisers according to need. Small-enterprise mutual aid supports eligible owners’ retirement or closure needs; business safety mutual aid addresses knock-on insolvency from customers’ failure. They are different schemes with separate eligibility.
• Family, employee and third-party succession differ in ownership, funding and trust. M&A needs financial/legal due diligence and post-acquisition integration, not just price negotiation. Revitalization separates business viability, excessive debt and immediate liquidity.
• Business-continuity strengthening plans recognize preventive disaster measures. Cooperation can support joint purchasing, development and sales, with clear roles and costs. Overseas expansion requires demand, regulation, IP, payments, exchange exposure, logistics and local operations to be assessed together.

Workplace uses

• Workplace applicationBefore seeking support for an AI purchase, define the operational problem and investment purpose. Do not infer current eligible expenses or deadlines from last year’s article.

Major topics (site curriculum)

• SME and small-enterprise definitions
• Reading white papers and statistics
• Value added, productivity and wages
• Labor shortages, entry and regional economies
• Public lending and credit guarantees
• Grants, subsidies and applications
• Innovation plans, capability plans and DX support
• Support institutions, advice and mutual aid
• Succession, M&A and revitalization support
• Resilience, cooperation and overseas expansion

Learning resources

• Examination scope reference ↗
• SME Consultant exam guide / study guide ↗